Black & White Bridging's comment on today's inflation hike

20 November 2024

Martyn Smith, Managing Director at Black & White Bridging, commented:

“The rise in inflation to 3.2% up 2.3% from September reflects the ongoing pressures of rising energy costs and housing expenses, which remain key drivers. For the mortgage and bridging markets, this creates additional complexity, as higher living costs put further strain on affordability assessments and borrower confidence.

"While core inflation has only edged up slightly, the persistence of elevated service costs is a clear sign that inflationary pressures are far from resolved. This environment makes it increasingly difficult for lenders and borrowers to plan effectively, particularly with the Bank of England showing no urgency to cut the base rate.

"Looking forward, the bridging market will continue to play a vital role in providing flexible financing solutions, but sustained inflation could lead to a prolonged period of cautious lending and limited activity in the wider property market.”